By continuing a bad trend for quite some months, Gain Capital Holdings Inc which is a FX brokerage group specifies that September 2018 was by far the weakest and slowest when it comes to trading volume.
Both Forex.com, as well as City Index online retail trading brands, is owned by Gain Capital. As the reports suggest, the company has had $149.6 billion of trading volume in the month of September. It is the first time in five years that the numbers at Forex.com have gone below $150 billion.
In the beginning, it was going well as they have posted over $200 billion retail trading volumes that took place each month for six months. The numbers were good for the first half of the year and the hopes were pretty high. But it took a bad turn on the month of September. The volumes were suddenly seen dropping thus it was a bitter shock to them.
It is seen that the company dealt around $7.5 billion on an average in the daily trading volume during the month of September. Whereas the numbers produced through daily trading volume were slightly high with $7.6 billion on August 2018.
Glenn Stevens, the CEO of this reputed company went on to explain:
“Generally lackluster trading conditions throughout the third quarter negatively impacted trading volumes in our retail and futures businesses across GAIN’s global footprint.
However, while volumes were down, revenue per million increased to about $162 for the quarter. The increase in RPM was driven primarily by pockets of volatility in emerging market currencies, including the Turkish Lira, as trading in these products typically generates higher revenue capture for us. Events in Turkey, as well as Argentina, during the quarter also had a ripple effect of a few brief periods of increased trading activity in EUR, GBP and Metals. The foregoing did not impact our Futures business, which saw revenue per contract of approximately $5.15 during the third quarter.”